Coxall v. Clover Commercial Corp.
Civil Court of the City of New York
781 N.Y.S.2d 567 (2004)
Clover (defendant) financed a used-car purchase by the Coxalls, peacefully repossessed the car after Jason Coxall (plaintiff) stopped making payments, sent notice letters with redemption instructions, then resold the car back to the original dealer for $1,500 and sought a deficiency judgment against the Coxalls for the remaining balance. At trial, Jason offered no defense to the underlying default, but Clover offered no evidence that its resale was commercially reasonable, and the notice's timeliness and completeness were also in question.
Whether a secured party who fails to provide a debtor with adequate notice or ensure a commercially reasonable sale of collateral may obtain a deficiency judgment against the debtor.